FMG secures majority stake in Red Hawk
Red Hawk owns the Blacksmith iron-ore project, located 30 km west of Fortescue’s Solomon operations in the Western Hub.
ASX-listed Fortescue said on Tuesday morning that it had obtained a majority interest of 66.23% in iron-ore junior Red Hawk Mining following the acceptance of its off-market takeover offer by Red Hawk’s biggest shareholder, TIO (NZ) Limited (Todd).
Under the terms of the offer, Fortescue has proposed to acquire up to 100% of Red Hawk’s shares.
Shareholders who accept the offer will receive a base offer price of A$1.05 a share, with an increased offer price of A$1.20 a share should Fortescue obtain a relevant interest in 75% or more of Red Hawk shares by 7:00 pm (AEDT) on Tuesday.
Fortescue has also stated that it will waive the only condition of the offer within 14 days of acquiring a relevant interest of at least 50.1% in Red Hawk shares, rendering the offer unconditional.
Once the offer is unconditional, shareholders who have accepted will be paid within ten business days. Further, any shareholder who has already accepted will automatically receive the increased offer price if the increased offer condition is met.
Following Todd’s acceptance, FMG is poised to increase its stake further, and the Red Hawk board continues to support the offer.
“The board continues to unanimously recommend that Red Hawk shareholders accept the offer at either the base offer price or, if relevant, the increased offer price, in the absence of a superior proposal and subject to the independent expert continuing to conclude that the offer is fair and reasonable, or not fair but reasonable,” Red Hawk stated.
Furthermore, Red Hawk’s directors have also signalled their intention to accept the offer in respect of all shares they hold or control.
The offer is scheduled to close at 7:00 pm (AEDT) on March 3, unless extended or withdrawn.
Red Hawk owns the Blacksmith iron-ore project, located 30 km west of Fortescue’s Solomon operations in the Western Hub. The undeveloped project boasts a mineral resource estimate of 243-million tonnes at an average grade of 59.3%.
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